'Britannia Winkin' Cow Thick Shake' GST Classification Ruling: Beverage Categorized under CTH 2202 99 30

The UHT Sterilized Flavoured Milk marketed as 'Britannia Winkin' Cow Thick Shake' was determined not to be classifiable under Tariff Heading 0402 or 0404, but under CTH 2202 99 30 by the Authority. The product was considered a ready-to-consume beverage with a milk basis, falling outside the scope of Chapter 4 as per the Explanatory Notes to the Harmonized System of Nomenclature. The reliance on FSSAI regulations for classification was disregarded, emphasizing the precedence of Customs Tariff aligned with HSN for GST classification.

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Issues Involved:
1. Classification of UHT Sterilized Flavoured Milk under GST Tariff.

Detailed Analysis:

Issue 1: Classification of UHT Sterilized Flavoured Milk under GST Tariff

Applicant's Submission:
- The applicant, a manufacturer of UHT Sterilized Flavoured Milk marketed as 'Britannia Winkin’ Cow Thick Shake', argued that the product should be classified under Chapter 4, specifically under Tariff Heading 0402 or alternatively, Tariff Heading 0404.
- The product consists primarily of milk (80-90%) and sugar (10-12%), with added flavors and stabilizers.
- The applicant cited judicial precedents and the Food Safety and Standards Authority of India (FSSAI) regulations, which classify flavoured milk under 'Milk and dairy-based drinks' (Category 1.1).
- The applicant argued that the product retains the essential character of milk and should be classified under Chapter 4 based on the General Rules for Interpretation of the Customs Tariff Act, 1975.

Authority's Analysis:
- The Authority examined the relevant Chapter Notes and Explanatory Notes of the Harmonized System of Nomenclature (HSN) for Chapter 4 and Chapter 22.
- Chapter 4 covers 'Milk and cream, concentrated or containing added sugar or other sweetening matter' (CTH 0402) and 'Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included' (CTH 0404).
- The product in question consists of standardized/toned milk (87-89%), sugar, stabilizers, and flavors, and is marketed as a ready-to-consume beverage.
- The Explanatory Notes to HSN for CTH 0402 specifically exclude beverages consisting of milk flavoured with cocoa or other substances, classifying them under heading 22.02.
- The product does not fall under CTH 0404 as it does not lack any natural milk constituents nor does it have any added natural milk constituents.
- The Authority noted that the applicant had been classifying the product under CTH 2202 99 30, which covers 'beverages containing milk'.

Ruling:
- The Authority concluded that the product is appropriately classifiable under CTH 2202 99 30, which includes 'beverages containing milk'.
- The classification under Chapter 4 was rejected as the product is a ready-to-consume beverage with a basis of milk, specifically excluded from Chapter 4 by the Explanatory Notes to HSN.
- The reliance on FSSAI regulations for classification was dismissed, as the Customs Tariff aligned with HSN takes precedence for GST classification.

Final Decision:
- UHT Sterilized Flavoured Milk marketed under the brand name 'Britannia Winkin’ Cow Thick Shake' is not classifiable under Tariff Heading 0402 or 0404, but under CTH 2202 99 30.

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